Bulgaria asks ECB to oversee its banks

Bulgaria asked the European Central Bank on the 14 July 2014 to take over supervision of the country's banks, a week after the collapse of its fourth-largest bank and amid accusations of lending fraud by its major shareholder.

Bulgaria would be the first country that does not use the euro as its currency to join the banking union. But the country's currency, the leva, is already tied to the euro through an IMF-led currency board arrangement that pegs the leva to the euro at a fixed exchange rate.

ESO: Background information: State aid: Commission approves liquidity support scheme for Bulgarian banks http://www.europeansources.info/record/press-release-state-aid-commission-approves-liquidity-support-scheme-for-bulgarian-banks/

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